- Fewer deals, but greater conviction – the number of deals fell while aggregate value rose globally, as strategic buyers and financial sponsors pursued transformational transactions.
- Geopolitics shapes deal corridors – transatlantic and transpacific corridors drove dealmaking and are set to strengthen further as cross-border M&A shifts toward geopolitically aligned jurisdictions.
- AI is an M&A game-changer – capital and deals are moving toward AI infrastructure, power generation and data centers, and away from traditional software.
- Private capital adapts – exit markets are reopening for premium assets, while continuation funds and secondaries remain important to the private markets ecosystem.
- Resilient fundamentals – the fundamentals underpinning M&A remain strong heading into 2027, despite ongoing economic and geopolitical uncertainty.
Dealmakers placed fewer but bigger bets, according to the latest Global M&A Review from global law firm Ashurst Perkins Coie. Activity is increasingly concentrated in larger, more strategic transactions as buoyant US deal activity, much activity in the technology and energy sectors and capital following geopolitical alignment all played their role in shaping the global M&A landscape in 2026.
Drawing on market data and the insights of Ashurst Perkins Coie partners, the report analyzes deal activity over the period and outlines what dealmakers can expect in 2027.
The report brings together the views of Ashurst Perkins Coie partners across 12 markets and regions: the US, the UK, France, Germany, Spain, the Middle East, India, Australia, Japan, Southeast Asia, Mainland China and Hong Kong. It also includes sector spotlights on financial services, technology, infrastructure and energy, as well as analysis of private capital, warranty and indemnity / representations and warranties (W&I/R&W) insurance, shareholder activism, merger clearance and tax.
AI and technology: repricing assets, redrawing capital flows
In US technology M&A, a repricing of assets is underway with greater emphasis on those that are most relevant to AI. Capital is moving toward AI infrastructure, including power generation, data centers and cooling technologies. Surging electricity demand from data centers, AI workloads and electrification is driving utilities to pursue scale, and utility M&A is expected to intensify. Following the US midterm elections, dealmakers are watching for any changes to the rules governing AI and data centers, as greater congressional oversight could bring closer scrutiny of consolidation in the tech sector.
In the technology sector, Europe is focused on semiconductors and strategic autonomy, Asia-Pacific remains concentrated in semiconductors and hardware, particularly in China, Japan and South Korea and Gulf capital is driving Middle East tech activity.
Security and scale: energy, defense and banking
Geopolitics is redrawing sector priorities across markets. In Japan, energy security has moved from a procurement concern to a matter of national strategic priority, and capital is moving accordingly.
Geopolitical disruptions are pushing Southeast Asian nations toward domestic renewables, nuclear options and upstream exploration. In Europe, governments are accelerating defense spending commitments following NATO targets and evolving geopolitical risks. Defense and security consolidation is set to accelerate in markets such as Spain.
In financial services, banks are returning to growth-driven M&A. The trend was initially led by stronger US banks, but other regions are now following. Banking consolidation is a continuing theme in Europe, where policymakers see scale as crucial to the region's long-term competitiveness. Private equity is also taking insurance platform strategies proven in the US and Europe to Australia.
Merger control: new rules, wider reach
Merger control is being recalibrated around the world. In the US, negotiated remedies are back, but enforcers remain willing to litigate where remedies fall short, and state attorneys general and private parties are independently challenging deals.
Meanwhile, Australia's new mandatory regime means more deals than ever are coming before the regulator, and authorities in Asia and the Middle East are stepping up enforcement.
Regulators in the EU, UK, US and Australia are also scrutinizing "acquihires", transactions involving the hiring of employees, rather than the acquisition of a business or assets, often with non-exclusive IP licenses. Increasingly common in AI, where top-tier development talent is scarce, these deals may fall outside traditional merger notification thresholds, and competition authorities are concerned that they reduce competition where buyers "buy" rather than "build" innovation.
Tony Damian, Co-Head of M&A (Australia), said:
"Global M&A has had a strong 2026, led by the US. Uncertainty has not stopped strategic buyers and sponsors from completing significant deals. While that uncertainty is likely to continue into 2027, the fundamentals underpinning M&A remain intact. Robust corporate balance sheets, substantial sponsor capital and heightened activity in the technology and energy sectors should all continue to drive dealmaking."
Tom Mercer, Head of Public M&A EMEA, added:
"International acquirors accounted for 82% of total deal value in UK public markets in the first half of 2026, and we expect more of the same in 2027. Well-funded US strategics, financial sponsors and sovereign investors all have significant capital to deploy, and perceived lower valuations make UK businesses attractive targets. As deal sizes grow, we also expect that acquirors will increasingly consider working in consortia, with co-investors, and use capital from the private markets to share financing risk and M&A returns."
Tao Koon Chiam, Head of M&A, Asia, commented:
"Dealmaking across Asia remains resilient but likewise more selective. Flexible or innovative deal structuring are increasingly important to dealmakers to access growth while managing risks. We are getting involved really early and helping to structure with deal certainty in mind so that the dealmakers are best placed to capture the opportunities ahead."
David Martinez, M&A partner in Seattle, said:
"It's been a very busy period in the US, with many deals at the larger size with mega-cap and even giga-cap transactions. Private equity was more active in the first half of the year. I expect large companies to keep using their strong balance sheets to drive M&A for the rest of the year and into 2027. As for private equity, sponsors will focus on continuation funds and on positioning for future exit opportunities."
Read the full report here: Global M&A Review 2027
